DRIVING PERFORMANCE IN RETAIL SMEs: THE ROLES OF ENTREPRENEURIAL ORIENTATION, TOTAL QUALITY MANAGEMENT, AND KNOWLEDGE MANAGEMENT

Abstract

This study examines the influence of entrepreneurial orientation (EO), total quality management (TQM), and knowledge management (KM) on organizational performance (OP) in small and medium-sized enterprises (SMEs) in Thailand’s retail sector. EO, TQM, and KM are highlighted as key internal capabilities and assets that contribute to business success according to the resource-based view (RBV). This quantitative study was conducted on 353 participants using proportional stratified sampling. The participants, comprising owners and senior managers of retail SMEs, including convenience stores, traditional shops, and supermarkets, were surveyed using a structured questionnaire. The instrument model was empirically tested using covariancebased structural equation modeling. This study contributes to theory development by synthesizing EO, TQM, and KM under the RBV framework to explicate performance in the context of retail SMEs. It reports that EO positively influences TQM, KM, and OP; TQM positively affects KM and OP; and KM significantly influences OP. This study shows that EO, TQM, and KM are important for enhancing business performance. It also provides managerial guidelines for SMEs to remain competitive and capable of pivoting with the rapidly evolving retail landscape.